Enerside, a Spanish vertically integrated company in the solar photovoltaic industry, reported an EBITDA of €2.9M in the first half of the year, reflecting a growth of €16.5M compared to the same period last year.

The company presented its semi-annual results and corresponding management report to the market today, which includes a favorable Limited Review Report for the first half of 2024 from EY.

During the first half of the year, Enerside generated a positive operating cash flow of €2.5M, partly driven by the sale of the 400 MW Palmadula (Italy) park. This transaction is part of its asset rotation strategy under the Impulsa strategic plan for 2024-2026.

The positive cash flow was also supported by the company’s focus on proprietary projects, leading to the discontinuation of third-party construction activities. Additionally, Enerside achieved cost optimization, reducing annualized operating expenses by more than 50%, paving a clear path to profitability.

As a result, Enerside significantly reduced its losses by €3.7M.

“Enerside has already achieved the primary objectives set out in the second phase of its Impulsa plan and is now ready to initiate the third phase, focused on profitable growth,” explained Enerside CEO Joatham Grange.

Over the past year and a half, Enerside has successfully adapted its positioning to anticipate major transformations in the renewable energy sector, such as energy price volatility and the end of the ultra-low interest rate era. “These conditions have posed challenges for our company and required a dynamic strategy adjusted to the new realities, which Enerside has effectively addressed and overcome,” emphasized the CEO.

Enerside CFO Jaume Solà, appointed in July 2023, underscored “the importance of business focus and financial discipline as hallmarks and keys to the success of the Impulsa Plan.”

Balance Sheet Strengthening

In the first half of 2024, Enerside made significant progress in capital structure, refinancing its short-term financial debt through agreements with banks, incorporating Laurion Group as a new key shareholder, and securing €25 million in new financing to support the development of its business plan over the coming years.

Business Milestones

Enerside has expanded its project portfolio, with 17% of its total 7.3 GW now comprising stand-alone battery energy storage systems (BESS) and 44% a combination of solar photovoltaic and batteries. During the first half of the year, the company initiated the development of new stand-alone BESS projects, including repurposing the 200 MW Serracapriola project in Italy and launching new projects in Italy and Spain to solidify its presence in this complementary technology.

The company has also accelerated asset rotation under its strategic plan, achieving 783 MW in development-phase sales, 6 MW in operation, and targeting €70M in revenue from sales between 2024 and 2026.

As part of the Impulsa plan, Enerside continued its growth strategy, completing its third inorganic acquisition in three years by acquiring five PMGD parks at various development stages in Chile, totaling 37 MW.

Enerside has also consolidated its position as an independent power producer (IPP) with 17 MW currently in operation, stemming from projects fully originated, developed, financed via project finance, and built by its in-house teams.

Meeting 2024 Forecasts

Enerside has already met its 2024 sales forecasts, achieving 406 MW in asset rotation sales, generating €10.7M in revenue.

Operating in four high-growth solar photovoltaic markets (Spain, Italy, Brazil, and Chile), Enerside boasts a project portfolio exceeding 7.3 GW, with 4.7 GW developed in-house and 2.6 GW acquired in Italy and Chile.

New Equity Analysis Coverage by JB Capital Markets

Enerside has been listed on BME Growth for two and a half years, receiving robust support from capital markets, with a year-to-date yield exceeding 7%. JB Capital Markets has initiated new equity research coverage, valuing Enerside’s equity at €5.5/share, 55% above its latest trading price of €3.5/share.